Page 46 - Ready Set Retire

Stephen J. Kelley
no idea at all how long you have to plan for. The key is to
maximize cash flow. And the trick to that is maximizing those
sources of income that will last as long as you.
Take the case of Tom and Linda. They require $80,000 a year
to maintain their desired lifestyle. Tom’s PIA (primary
insurance amount – the amount paid at his full retirement age,
or FRA) is $2,500 per month, and Linda’s is $1,800. Tom’s
family is cursed with relatively short life spans, late 60s to early
70s, but Linda’s family frequently lives well into their 90s. They
had been going to an advisor that was more oriented toward
managing money, and was less experienced in income
planning. She looked at their situation, especially Tom’s
lifespan issue, and did a bit of math with a handy-dandy “break
even” calculator she uses to advise her clients, and calculated
the following:

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